Polymarket Alumni Raise $15M for The Clearing Company, a New Regulated Prediction Market
A team of former employees from the prediction market platform Polymarket has secured $15 million in seed funding for a new venture, The Clearing Company. The funding round was led by the prominent venture capital firm Union Square Ventures, with participation from a slate of high-profile investors including Haun Ventures, Variant, and Coinbase Ventures.
A New Player in a Crowded Field
The Clearing Company is entering a space that has seen a surge of activity in recent months, with major players in both the crypto and traditional gaming industries jockeying for position. The company is led by CEO Toni Gemayel and a team of engineers, all of whom previously held key roles at Polymarket, the world’s largest, though currently unregulated, prediction market.
The company’s vision is to create a “new kind of prediction market” that offers markets on a wide range of topics, including “crypto, politics, sports, culture, and more.” The “Clearing Company” name suggests a focus on building a robust and efficient settlement layer for these markets, potentially creating a smoother trading experience for users.
“The next era of prediction markets will be shaped by the collective creativity of the internet,” the company stated in its announcement. “Their power won’t come from complex financial mechanics and clunky user interfaces, but from simplicity and imagination.”
The Race to a Regulated U.S. Market
The launch of The Clearing Company is the latest development in a broader race to bring regulated prediction markets to the U.S. It comes as its founders’ former company, Polymarket, is preparing for its own highly anticipated U.S. relaunch.
The competitive landscape is heating up rapidly:
- Polymarket: After a two-year absence from the U.S. market, Polymarket is expected to relaunch soon after acquiring a CFTC-licensed exchange, QCEX.
- Coinbase: A key investor in The Clearing Company, the crypto exchange has already announced its own plans to launch prediction markets, leveraging its existing CFTC registration.
- FanDuel and DraftKings: The two sports betting giants are also making moves. FanDuel has partnered with CME Group to launch event contracts, while DraftKings is reportedly in talks to acquire the licensed prediction market platform Railbird.
The Blockchain-Based Approach
What sets The Clearing Company apart from many of its potential competitors is its explicit focus on being “onchain.” By registering transactions on a blockchain, the company aims to create a more transparent and permissionless market structure.
This approach aligns with a broader trend in the financial world, where companies are exploring how to leverage blockchain technology to create more efficient and open financial systems. The company’s ability to secure significant backing from top-tier venture firms suggests strong investor confidence in its vision to build the next generation of regulated, on-chain prediction markets.
While The Clearing Company has not yet announced a launch date, its entry into the market adds another well-funded and highly experienced team to the increasingly competitive race to define the future of prediction markets in the United States.
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